US Dollar Mostly Higher on Fed Taper Expectations

Greenback is mostly higher today, gaining against many of its major counterparts as the latest expectations for a Federal Reserve taper are bandied about. Further tightening in US monetary policy is supporting the US dollar right now.

US Treasury yields are rising today, thanks in large part to expectations that the Federal Reserve will announce further tapering next week. Higher yields and the prospect of tighter monetary policy are helping the greenback in Forex trading.
Greenback is doing well especially against the euro and the yen today. BOJ policymakers are expected to remain dovish and continue with easing, and the latest ZEW report out of Germany was disappointing, dragging on the euro. Only the pound is doing well against the US dollar today.
The US economy continues to show signs of improvement, and that is helping the greenback gain ground against many of its major counterparts. With the US economy on the mend, the Federal Reserve is expected to be less accommodative so that it is possible to put the brakes on possible inflation as things heat up.
At 15:11 GMT EUR/USD is lower, dropping to 1.3532 from the open at 1.3565. GBP/USD is higher, rising to 1.6464 from the open at 1.6438. USD/JPY is up to 104.3945 from the open at 104.2065.

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